My German Tax Return: A step-by-step guide to file your taxes in Germany

This is a tax guide for all employed persons who want or need to file an income tax return (or: tax declaration) in Germany but do not speak much German. It explains the basics of German tax law and guides you through the most important questions and tax forms:

- Where do I file an income tax return (Steuererklärung)?
- What deadlines do I need to know regarding my tax return?
- Which tax office (Finanzamt) do I have to submit my tax return to?
- May I send a German tax return by email?
- Which expenses are deductible in a tax return?
- Are there lump sums (Pauschbeträge) or do I have to calculate every little bit?
- What do all these weird words in the tax forms mean?
- What do I need may wage tax certificate (Lohnsteuerbescheinigung) for?
- What do tax payers mean when they talk about the "Mantelbogen"?
- What the heck is "Elster", if not a magpie?
- How do I fill in the Annex N?
- Is there a chance for a tax refund?
- …And so much more!It's so much easier than you think!
Even for native speakers, German tax law sometimes seems rather incomprehensible. But then, most of the time, it's not as complicated as you may have feared! Many tax forms are actually quite self-explanatory.
Whether you do your tax return yourself or seek professional advice: This guide about filing a tax return in Germany will help you!
Though you may speak little or no German, you can basically do your tax return yourself. But even if you use the services of a tax advisor (Steuerberater) or go to an income tax help association (Lohnsteuerhilfeverein), the following applies: only if you know the basics of German tax law you can point out important facts to your advisor that may be unusual for other taxpayers.

• Language: English
• Publisher: Akademische Arbeitsgemeinschaft Verlagsgesellschaft
• Release date: Feb 28, 2024
• ISBN: 9783965331310

Book preview

cover.jpg

© 2024 by Akademische Arbeitsgemeinschaft Verlagsgesellschaft mbH

Postfach 10 01 61 · 68001 Mannheim

Telefon [phone]

[e-mail]

www.akademische.de

Das Werk einschließlich seiner Teile ist urheberrechtlich geschützt. Jede Verwertung außerhalb der Grenzen des Urheberrechtsgesetzes ist ohne Zustimmung des Verlags unzulässig. Das gilt insbesondere für die Vervielfältigung, Übersetzung, Mikroverfilmung sowie Einspeicherung und Verarbeitung in elektronischen Systemen.

Alle Angaben wurden nach genauen Recherchen sorgfältig verfasst; eine Haftung für die Richtigkeit und Vollständigkeit der Angaben ist jedoch ausgeschlossen.

Zum Zwecke der besseren Lesbarkeit verwenden wir allgemein die grammatisch männliche Form. Selbstverständlich meinen wir aber bei Personenbezeichnungen immer alle Menschen unabhängig von ihrer jeweiligen geschlechtlichen Identität.

Alternative Streitbeilegung (Online-Streitbeilegung und Verbraucherschlichtungsstelle)

Die Europäische Kommission hat eine Plattform zur Online-Streitbeilegung eingerichtet, die unter folgendem Link abgerufen werden kann: www.ec.europa.eu/consumers/odr. Wolters Kluwer ist nicht bereit und nicht verpflichtet, an Streitbeilegungsverfahren vor einer Verbraucherschlichtungsstelle teilzunehmen.

Inhaltsübersicht

1   Vorwort

2   Tax returns: The Basics

2.1   Who has to file a tax return?

2.2   What is the tax identification number?

2.3   What belongs in a tax return?

2.4   How do I prepare a tax return?

2.5   How do I file my tax return?

2.5.1   Submission by post

2.5.2   Sending electronically using ELSTER

2.5.3   Submitting your tax return to the tax office yourself

2.6   By when do I have to submit my tax return?

2.7   Which tax office do I submit my tax return to?

2.8   Tax classes and types of assessment

2.8.1   Tax classes

2.8.2   Types of assessment

2.9   Tax tips: Where do tax lump sums apply and where do I need proof?

2.9.1   Where the tax office does not look so closely

2.9.2   The tax office takes a closer look here

3   Fill-out Instructions for the most important forms

3.1   What is the »eDaten« (»eData«) all about?

3.2   Mantelbogen, Hauptvordruck ESt 1 A (Covering sheet, main form ESt 1 A)

3.3   Anlage Sonderausgaben (Special Expenses Annex)

3.3.1   Which costs are deductible?

3.3.2   How to fill in the Special Expenses Annex

3.4   Anlage Außergewöhnliche Belastungen (Extraordinary Expenses Annex)

3.4.1   What are extraordinary expenses?

3.4.2   How to fill in the Extraordinary Expenses Annex

3.5   Anlage Haushaltsnahe Aufwendungen (Annex for Household-related Expenses)

3.5.1   What are household-related expenses?

3.5.2   What is supported?

3.5.3   How to fill in the Annex for Houshold-related expenses

3.6   Anlage N (Annex N)

3.6.1   What are income-related expenses (Werbungskosten)?

3.6.2   These income-related expenses could be particularly interesting for you

3.6.3   How to fill in Annex N

3.7   Anlage N–Doppelte Haushaltsführung (Annex N-Double Household)

3.7.1   What is a double household?

3.7.2   How to fill in Annex N-Double Household

3.8   Anlage Mobilitätshilfe (Mobility Allowance Annex)

3.8.1   What is the mobility allowance and who is entitled to it?

3.8.2   How to fill in the Mobility Allowance Annex

3.9   Anlage Vorsorgeaufwand (Pension Expenses Annex)

3.9.1   Which contributions are deductible?

3.9.2   How to fill in the Pension Expenses Annex

3.10   Anlage Kind (Annex Child)

3.10.1   Why is this annex so important?

3.10.2   How to fill in the Annex Child

3.11   Application for child benefit

4   After the tax return: Am I really done now?

4.1   How long do you have to check a tax assessment notice?

4.2   Attention: Several notices on one paper

4.3   Objection: Form, deadline and costs

4.3.1   In which cases should an objection be filed?

4.3.2   What is a final tax assessment notice?

4.3.3   What is a provisional tax assessment?

5   Tax lexicon: Important terms you should know

My German Tax Return: A step-by-step guide to filing your taxes in Germany

1   Vorwort

Dear readers,

We have been dealing with tax law for a long time – and at some point we noticed that the German tax forms are not available in English. Why is that? Perhaps, it's too tricky to translate them: What if a mistake happened?

This is where we would like to step in and help you with this guide. The fact that you are willing to deal with German tax law is admirable. Even for native speakers, it sometimes seems incomprehensible. But then, most of the time, it's not as complicated as you may have feared! Many forms are actually quite self-explanatory.

Even though you speak little or no German, you can basically file your tax return yourself. Even if you use the services of a tax advisor (Steuerberater) or go to an income tax help association (Lohnsteuerhilfeverein), knowledge of some basics can go a long way in telling your advisor about facts that might be particular to your case, for example financial support for family members abroad.

We have based this guide on the most important tax forms for the 2023 tax return, which is to be submitted in 2024. This means that when you read this guide in later years, the forms may have changed. That is why we included the original German text of the individual forms – so you can compare whether you are actually in the right place. You can download the current forms for free at www.steuertipps.de.

Your feedback is important to us! Let us know if this guide helped you. Write to us at [e-mail] about what helped you and what you missed. If you find this kind of information helpful, we are happy to translate other guides into English and offer more detailed advice.

We wish you all the best with your German tax return.

Your Steuertipps editorial team

2   Tax returns: The Basics

2.1   Who has to file a tax return?

The »unlimited income tax liability« is regulated in § 1 para. 1 of the Income Tax Act (Einkommensteuergesetz, or short: EStG).

Only natural persons are subject to unlimited income tax liability.

A person is subject to unlimited tax liability in Germany, i.e. with all domestic and foreign income, if they have their residence or habitual abode in Germany.

This means in detail:

»Natural persons« are all living people. Legal capacity, age, sex, marital status and nationality are irrelevant.

»Domestic« is within the Federal Republic of Germany.

Your »residence« is where you regularly use an accommodation yourself and also maintain it in the future. It is necessary that the accommodation is available to you at all times as a place to stay. There must be at least one fixed room suitable for living in, with furniture, heating and cooking facilities. This can also be a furnished room.

!

Tipp: Multiple residences are possible, including residences within Germany and abroad at the same time. For unlimited income tax liability, a residence in Germany is decisive.

A »habitual abode« is where someone chooses to stay not only temporarily, but without establishing a residence. A stay of more than six months without a long-term interruption leads to a habitual residence and thus also is subjected to unlimited tax liability from the beginning.

»Unrestricted income tax liability« means that you are liable to pay tax in Germany with your global income, i.e. with all domestic and foreign income.

!

Tipp: This principle of taxing world income raises problems if both the German state in which you reside as a taxpayer and the foreign state in which you earn income want to tax the same (foreign) income. Residence taxation in Germany and deduction of tax at source abroad can then lead to double taxation.

German income tax law provides for the following regulations to mitigate or avoid double taxation of positive foreign income in the case of unlimited tax liability:

in the case of taxation of the foreign income in Germany, crediting or deduction of the foreign tax (credit method);

in the case of exemption from taxation in Germany, inclusion of the foreign income in the progression proviso (exemption method).

Whether Germany (first case) or the other country (second case) has the right to taxation is regulated with most countries through a double taxation agreement (DTA).

You can read and download all double taxation agreements that Germany has entered into with other countries on the website of the Federal Ministry of Finance.

2.2   What is the tax identification number?

Since 2008, everyone who registered a residence in Germany was given a tax identification number (Steuer-Identifikationsnummer). However, this did not always go entirely smoothly – sometimes numbers were assigned twice or someone was forgotten.

Anyone who registers a residence in Germany after 2007 receives a tax identification number as soon as the registration office transmits the data to the Federal Central Tax Office (Bundeszentralamt für Steuern, BZSt). If the tax identification number does not arrive within three months, you can contact the BZSt.

Parents receive the tax identification number for their (newborn) children after the registration office (Meldebehörde) forwards the data to the BZSt.

If you do not find a letter with your tax identification number in your documents, contact the Federal Central Tax Office. This also applies if you have lost the letter.

There are three ways to request your tax identification number:

Fill out the form Notification of tax identification number(Formular »Mitteilung der Steueridentifikationsnummer«) on the website of the Federal Central Tax Office.

Send an e-mail to [e-mail] and ask to be informed (again) of your tax identification number.

Write to Bundeszentralamt für Steuern, Referat St II 3, 53221 Bonn.

You must send the following information in order to have your tax ID (re)issued:

Surname

First name

Your address

Place of birth

Date of birth

For data protection reasons, the tax identification number is only sent by post and never by e-mail.

2.3   What belongs in a tax return?

There are some important tax return forms whose names you should know – even if you use software to fill them out and it is likely that the names of the forms are probably not mentioned there at all.

!

Tipp: In the chapter »Fill in Assistance« we will explain in detail how to fill out the most important forms.

All taxpayers with unlimited tax liability, i.e. taxpayers with residence and income in Germany, must submit the »covering sheet« (Mantelbogen or officially: Hauptvordruck ESt 1 A). In the covering sheet you will be asked for, for example, your name, address, occupation, bank account details, religious affiliation, etc.

If you pay church tax in Germany, you need to submit the »Special Expenses Annex« (Anlage Sonderausgaben). Donations are also entered here.

You require the »Extraordinary Expenses Annex« (Anlage Außergewöhnliche Belastungen) if you have a disability or if you have incurred costs due to an illness.

In the »Annex for Household-related Expenses« (Anlage haushaltsnahe Aufwendungen) you enter, for example, expenses for handymen or household help.

Employed persons must also submit the »Annex N« (Anlage N). Annex N contains salary and the income-related expenses (for example, the commuter allowance/commuting allowance for the commute to work, costs for a study room). There is an extra form »Annex N–Double Household« (Anlage N–Doppelte Haushaltsführung) starting with the tax return for 2023.

In the »Pension Expenses Annex« (Anlage Vorsorgeaufwand) you enter all insurance contributions for post retirement provision. In tax law, this is considered to be »special expenses«. In addition to statutory social security